Why a “No Spend” Challenge FAILS?!
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Why a no spend challenge “might” not work?
At the beginning of every year, there’s a lot of talk about money challenges—whether it’s a no spend or a low-buy—which makes sense because some people see a new year as a fresh start for their money. And I love a good money challenge; it’s a great way to reset your spending and give your savings account a boost.
But even though many have good results, I’ve heard some people say that these don’t work for them. There’s no way to know exactly why a no spend challenge fails, but I do have a few theories.
1. You didn’t set clear rules for “gray” areas
With a no spend challenge, you commit to only spending money on necessities for the duration of the challenge. This includes housing, transportation, utilities, insurance, and other monthly bills.
On the flip side, you commit to “not” spending money on non-essentials, which can include clothes, books, and impulse purchases.
There are, however, some gray areas with this challenge, and it’s important to recognize these and set clear rules for them. If you don’t, your challenge won’t be as successful.
One big gray area is food. And yes, food is a necessity because we have to eat. But what isn’t a necessity is buying food outside the home during a no spend challenge.
Now, I can’t tell anyone what to do—this is your challenge, your rules—but what I will say is that eating out gets expensive quickly, especially if you’re doing it every day or multiple times a week.
Therefore, continuing to eat out during a no spend challenge means you won’t save as much as possible, which might make it feel like the challenge didn’t work.
2. You didn’t identify your “why”
Saving money doesn’t come easy for everyone. We all have interests and likes, and consumption is always in our face. For this reason, in order to stick with any type of savings challenge, you have to know your why.
In other words, what is the end goal or what are you hoping to accomplish?
Saving money just because isn’t always enough to keep us motivated. So think about the big picture and identify your personal why.
Maybe you want to build your emergency fund and feel more financially secure, or maybe you want to pursue a side hustle full-time but need to create a cushion first.
Whatever it is, you have to know what you’re working toward. This can help you stay motivated when you feel like giving up.
3. Your timing was off (you planned it during a busy time)
Some people get excited and start a no spend challenge because they’re ready to take action and get their money together. But for a challenge to work, timing is everything.
During this period, you’re only spending money on necessities, so ideally, you need to plan your challenge at a time when you don’t have anything special going on. Therefore, if you plan it when you have an already booked social calendar, you’re setting yourself up to fail.
Take a few moments and look at the next few weeks in advance. If you have a baby shower, a dinner planned, or guests coming into town, that’s probably not the best time to start the challenge.
4. You didn’t plan for entertainment (forgot to search for free things to do before starting)
Boredom can be a huge budget buster. Some people browse stores or online when they don’t have anything to do, which can result in spending money. Or they’ll find some other way to kill time like going to the movies. (Related: How to Avoid Mindless Shopping)
If you’re used to spending money to have a good time, getting through a no spend challenge might be especially difficult. So it’s important to go into the challenge with this awareness and plan ahead.
No one expects you to sit in the house for 7 days or 30 days doing absolutely nothing. Under those circumstances, most people would crack and give up.
With that being said, brainstorm free ways to keep yourself entertained. For example, invite people over for a movie night or games and ask everyone to bring a dish. Go hiking, hang out at the beach, or go to a free museum or concert.
5. You didn’t take baby steps
If you spend very freely and don’t stick to a budget, going from this pattern to a no spend month might be too much too soon.
Not to say you can’t do it and succeed, but you might give up during the halfway point or feel the challenge is too restrictive.
My recommendation is to start off slow, maybe with a few no spend days, a no spend weekend, or a no spend week before jumping into 30 days. This gives you time to adjust to spending less and allows you to work out any issues before starting a longer challenge.
No-Spend Challenge FAQ
What is a no spend challenge?
A no spend challenge is a period during which you avoid non-essential spending. You focus only on buying necessities like food, housing, and utilities. The goal is to save money and become more mindful of your spending habits.
How does a no spend challenge work?
During a no spend challenge, you commit to not spending money on non-essential items for a set period, like a week or a month. You only pay for necessities such as groceries, bills, and transportation. This helps you save money and rethink your spending habits.
What can you buy in a no spend month?
In a no spend month, you can buy essential items like groceries, housing, utilities, transportation, and medical supplies. You avoid spending on non-essentials like dining out, entertainment, clothing, and impulse purchases. This focus helps you save money and reassess your spending priorities.